The Department of Conservation (DOC) is taking a second look at a controversial West Coast power project which had initially been rejected by the Government in 2019.
The Waitaha Hydro Scheme would see some of the Waitaha River south of Hokitika travel through a tunnel to a powerhouse before returning to the river.
Westpower, the company behind the proposed project, claims the powerhouse would generate enough electricity for 12,000 homes.
It was rejected by the Government in 2019 due to its significant impact on the "natural character" and value of the area.
Last May, Westpower launched an online campaign asking the Government to reconsider.
The latest proposal includes a revamped design to reduce its visual impact.
"We think that every renewable energy project that we can build in New Zealand should be built," Westpower chief executive Peter Armstrong told 1News.
He said the company's goal is to build renewable projects "to try to protect biodiversity".
Armstrong also argued that the Government had failed to properly consult with local iwi, who are partners in the project.
"We haven't heard anything but placeholder responses from the Government to date. During that course of time, we've seen three conservation ministers and we've contacted each of them and been told we will be contacted in due course," he said.
Conservation Minister Willow-Jean Prime's office told 1News DOC is still working on advice on whether the original decision should be reconsidered.
"On balance, I think it's a good proposal but we have to see what will happen with the proposal, who's paying for it, just to ensure West Coasters are the beneficiaries of it as well," Labour MP for the West Coast-Tasman, Damian O'Connor, said.
National's MP for West Coast-Tasman, Maureen Pugh, said the proposed project was "ideally suited for the small run of river, not a dam power scheme".
"Twenty megawatts of power would go a long way to making us independent on the Coast."
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